Home
News
- Ripple is currently engaged in a lawsuit with the SEC concerning its native XRP tokens’ alleged illegal sale.
- The lawsuit led to several exchanges delisting the XRP on their platforms.
- However, the firm maintains that its business is unaffected in the Asia Pacific region.
Ripple, the company behind creating the seventh-largest cryptocurrency by market capitalization, XRP, is currently engaged with the Securities and Exchange Commission (SEC) in a lawsuit. However, it firmly maintains that its business is fairly booming in the Asia-Pacific region.
The SEC lawsuit
With 39 billion XRP tokens in circulation, Ripple is the third-largest cryptocurrency firm in the US. In December 2020, the SEC held Ripple for its failure to register its native XRP as a security. As a result, it claims that the company had illegally raised over $13 billion for its operations, out of which CEO Brad Garlinghouse himself held profits of about $600 million. Thus, the SEC filed a lawsuit on the firm’s charges of violating the Contracts Act. Both parties are currently engaged in a long legal process that might lead to a judicial trial.
US activities affected
As a result of this lawsuit, several exchanges in the United States have delisted the XRP token even though the verdict on whether the company actually defrauded investors is not clear. This has led to a major hit in its activities. The only upside to this issue is that, luckily, the US is not the major source of market potential for the company, even though it is a critical market. The company’s CEO Mr. Garlinghouse claims that despite regulations in the crypto dimension, there seemed to be no clarity on the actual course of action to adhere to existing protocols in the US.
Asian business booming
Mr. Garlinghouse, in a statement, said that about 200 exchanges still have XRP listed on their networks. He added that liquidity has grown in markets in the Asia-Pacific region, especially in Japan. As this area is a major remittance corridor, the company has signed agreements with over 20 banks, including Japanese major conglomerate SBI holdings, to engage in collaborations and develop new crypto-based products and payment gateways. Ever since the lawsuit, the company has signed an additional 15 contracts with banks worldwide.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
